-Be very self reflective

-Be mindful of volume and liquidity

-Have a list of setups & recognize common chart patterns

-When you are first starting, cut down the number of setups to focus on the successful ones.

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Shorts:

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Lots of setups:

- Daily chart overextension

- Short into strength or g/r breakdowns

- Bounces 

- Tweak your plan based on price action you are seeing

- Watch support levels for breakdowns

- Must watch level 2 for the turns

- Stalk stocks

- First Red Day: http://www.famousdaytraders.com/index.php?title=First_Red_Day

 

Daily overextension explained:

- Judge from breakout point

- Multiple consecutive green days

- Large % run relative to prior action

 

The higher the better:

- Each passing day, more likely to short strength

- MAIN play to short is momentum shift and breakdown (often g/r triggers this). 

 

Note: If you miss a spike or g/r breakdown:

- Short bounces using prior resistance as risk

- OTCs can collapse fast

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Long:

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-Check for consolidation first

-Don't buy long after breakout point. Don't chase.

-Buy into strength as stock breaks to new high. (Pyramid purchase. Don't go all in.)

-Don't necessarily sell if dips below breakout level

-Don't get in at all costs. You can buy on dips.

-Usually re-tests highs. Doesn't breakout first time.

-Sell into strength